Fantasy sports gaming will be part of NJ's new gambling model

TRENTON — New Jersey lawmakers are bringing the big business of fantasy gaming into the real world of casino gambling.

Beginning April 22, The Division of Gaming Enforcement will launch a pilot program authorizing Atlantic City casinos to offer fantasy sports tournaments to their patrons.

“It’s a really good thing for the fantasy industry, there’s not really wide spread acceptance or knowledge of what we do and this will help bring awareness of the fact that we exist,” said Andrew Wiggins cofounder of Draftday.com, a fantasy sports gaming site for a variety of sporting events. “People are not aware that you can create a fantasy team and you don’t have to follow it for the entire season, you can actually win at the end of the day.”

According to the state gaming division, the new regulations allow for the use of the casino’s cage as another means to collect the entry fee and pay out winnings. According to the Division Spokeswoman, Lisa Spengler, allowing the casino to create a partnership with a fantasy gaming company to accept and payout fantasy gaming bet can be another tool to increase foot traffic, a marketing database and possibly revenue into the casino.

“The Division believes this presents a great opportunity for both casinos and companies currently providing fantasy sports tournaments to create a mutually beneficial relationship where the fantasy providers can expand their customer base,” said Spengler.

This latest attempt to rejuvenate Atlantic City’s slumping economy comes on the heels of Gov. Chris Christie’s recent decision to appeal a federal judge’s decision to uphold a ban on sports gambling in New Jersey and signing legislation in early March, which made New Jersey the third in the nation to allow gambling over the Internet.

Although not considered gambling under federal law, the division hopes this new regulation will help the state profit from the multi-million dollar industry of fantasy sports activity. “Fantasy sports is everywhere, there is even a fantasy sports convention in Atlantic City every year, it is huge,” said Spengler.

Traditionally played online, fantasy sports allows gamers to create their own sporting team, compiling players from several different teams within the league. Gamers then track their players’ results throughout the season. The lesser known day-of fantasy sports allow gamers to set up teams based on games that are being played on the specific day, and follow the players performance until the last game of the day is completed.

“Our revenue was over $750,000 in one year,” said Wiggins who co-founded and launched the fantasy sporting site in 2011. “We have over 35 million people play and maybe a couple thousand, at tops, play daily,” said the Draftsdaily.com co-founder.

Although the program will not kick off before the end of April, casinos are now scrambling to figure out how to include the additional revenue stream into their daily operations. “It is a positive step and we are excited to include anything that adds value to your product,” said Tropicana Casino Senior Vice President Of Marketing in Atlantic City, Eric Fiocco.

“At this point, however, we don’t really have the facts nor have we had the chance to review the regulation.”

The Trump Entertainment Resorts Inc. owns and operates The Trump Taj Mahal Casino in Atlantic City, and, citing steep financial difficulties, recently sold ownership of the Trump Plaza to a Latino-owned company at a record low $20 million dollars. Founder and former Chief Executive Office, Donald Trump, was surprised by the announcement from the state. “Mr. Trump just heard this news, so it is too early to tell,” said the Media Relations executive assistant Holly Lorenzo, in a statement.

The temporary regulation, which will allow fantasy gamers the opportunity to wager on day of baseball games and NCAA Tournament Games, will be in effect for 270 days. Within that time period, the division will propose the regulation for final adoption.